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Impact of a Balanced Scorecard as a Strategic Management System Tool to Improve Sustainable Development: Measuring the Mediation of Organizational Performance through PLS-Smart

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School of Economics and Management, North China Electric Power University, Beijing 100000, China
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Faculty of Business and Management Sciences, The Superior College Lahore, Lahore 54000, Pakistan
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National University of Computer & Emerging Sciences, Chiniot-Faisalabad Campus, Chiniot 35400, Pakistan
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Author to whom correspondence should be addressed.
Sustainability 2020, 12(4), 1365; https://doi.org/10.3390/su12041365
Received: 18 November 2019 / Revised: 10 February 2020 / Accepted: 11 February 2020 / Published: 13 February 2020
The study was carried out to investigate the empirical effect of a strategic management system on sustainable development by using a balanced scorecard (BSC), as a theoretical lens, and organizational performance, as an intervening variable. The study incorporated a positivism research paradigm in order to address the objective nature of research. As the current study has an empirical and impartial nature, a quantitative method was considered the best method for achieving the research objectives of the study. The study used questionnaires as a data collection instrument. In total, three hundred questionnaires were disturbed among Chinese power companies based in Pakistan. A stratified-random sampling approach was adopted to reach relevant respondents. Partial least squares-structural equation modeling was used for statistical analysis. BSC indicated a positive influence on sustainable development. Additionally, organizational performance depicted partial mediation between the strategic management system and sustainable development. The study underpins the theoretical foundation of a resource-based view (RBV) and a balanced scorecard view of the strategic management system. The findings suggest that non-financial measures have better consequences for employees’ performance, making them ecologically responsive, unlike the financial performance measures used previously. The study suggests taking measures related to wastage and usage of inimitable resources that focus on in-addition rather traditional measures, which can allow sustainable development. View Full-Text
Keywords: strategic management system; balanced scorecard; environmental sustainability and sustainable development strategic management system; balanced scorecard; environmental sustainability and sustainable development
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MDPI and ACS Style

Rafiq, M.; Zhang, X.; Yuan, J.; Naz, S.; Maqbool, S. Impact of a Balanced Scorecard as a Strategic Management System Tool to Improve Sustainable Development: Measuring the Mediation of Organizational Performance through PLS-Smart. Sustainability 2020, 12, 1365.

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